Hobbyist vs. business professional is the resonating theme of articles I have been reading lately.
Here is the question.
Are the hobbyists hurting professional businesses doing a similar art or skill? From the articles I am reading, they are. Some professionals are frustrated with the fact that they are running a business and pricing accordingly, but the hobbyists undercut their prices tremendously.
Okay! Here is my story.
Once upon a time long, long ago living in the foothills Millerton there was a stay at home mom yearning to do something on her own. That something was a business, but what kind of business? At that time all she knew how to do was crochet. She came up with a brilliant plan to crochet doilies, flowers, lace gloves, snowflakes and she even started to write her own crochet design books.
After much crocheting and pondering about her next step in establishing a business, she needed a selling outlet. Craft shows became her selling medium. She started gathering craft show venues and getting them lined up.
Now came the issue of pricing. Pricing her wares was easy. She only calculated the amount of material into the prices and tagged on a couple more dollars. She didn’t include the amount of time invested in each item. She knowingly undercut other “business” vendors at the shows.
Why?
Simple. She wanted the business and she felt by undercutting the prices drastically they doilies would fly off her table like pancakes.
She thought she was running a business, but in actuality it was a business in disguise.
You may be thinking “well this is a free market. What is wrong with undercutting prices”. You would be right. So, what exactly am I trying to say?
I cannot speak for everyone, but I personally wouldn’t worry about what everyone else is doing. Could we label the hobbyist as crumby and underhanded? Well, you could label the hobbyist as anything. How ever you label “hobbyist” doesn’t change the fact that they are still out there selling along side of you.
Don’t get me wrong. I am not bashing anyone here. I was a hobbyist turned business “professional”. I feel you can take this situation and use it to your advantage. Maybe the advantage doesn’t line your pockets with money immediately, but finding the advantage will help you define your business.
This is where you have to think out of the box. If you label your business as a business then treat it like one. A smart and well run business accounts for every detail involved in the making of a product. It accounts for labels, labor, electricity, rent, business insurance, etc. You want your business to stay competitive.
As frustrating as this situation is for businesses, you cannot exclude hobbyists.
So, what do you do in a slow economy where lower prices is the golden tag?
- First and foremost never underestimate the value of your items. Don’t worry about what others think (customers and vendors alike)
- The hobbyist are setting the stage up for the atmosphere of the show or even Internet sites like Ebay.com and Etsy.com. Pick and choose each show and selling medium wisely. Know exactly why you are putting your energy into each venue. Come up with goals for each venue. If they do not reach the goal, cull them out.
- Have a section of lower priced items to reach your “target market”. Draw them into your business. This is not where you undercut prices, but where you sell smaller less expensive items.
- Look professional and not like a hobbyist. Establish your business brand whether it is online or at a show.
- Look at certain selling markets as a way to test waters for a new product. If people are willing to pay for a product during a tough economy then there is a need for it.
Our business is always in competition with others. It is not how you complain about the competition, but how you think out of the box and tackle your new business ideas.
Many Blessings,
Other Great Reads:
- Low Down On Soap And Candle Insurance
- How Much Do You “Love” Your Soap Or Candle Business
- Are You Intentional Or Busy?
- What I learned Our Trip To Gettysburg
- Stop Burning Time And Money In Your Candle Business Review
